In Italian, when someone says grazie, you should say prego.
That’s fine, but there are other ways to to say “you are welcome”.
The easiest way to say thank you in Italian is grazie, and prego is you are welcome. We all know that. If you want to express your gratitude, regardless of the social position of the person you’re talking to or situation, grazie and prego are enough.
However, if you are learning Italian, you should know other ways to say “thank you” and “you are welcome” because people in Italy use the expressions we are going to see in this post.
We can start with ti ringrazio (= io ringrazio te) and the formal la ringrazio (= io ringrazio Lei) as “thank you so much.”. We can use this structure with different subjects: vi ringrazio, vi ringraziamo, (lui / lei) ti ringrazia and so on.
Less common and rather obsolete is grazie di cuore.